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Brief Statement of the First Quarter Financial Results for the Fiscal Year Ending March 2023

[Japanese GAAP (Consolidated)]

July 28, 2022

Forward-looking Statement

The statements and figures contained in this Brief Statement of Financial Results for the fiscal year ending March 2023 (the "Brief Statement") with respect to ACOM Group's plans and strategies and other statements that are not historical facts are based on information available at the date of announcement of this Brief Statement. However, there are some potential risk factors in the Group's business management. In particular, the plans formulated by the Company rest on the assumption that the stagnant economic activities on the impact of the spread of COVID-19 will recover. Therefore, the actual results may differ significantly based the converges of COVID-19 infection.

The trend of requests for interest repayment is also highly uncertain, due to its sensitivity to changes in external environmental changes. The Group may have to make additional provision for loss on interest repayment.

Actual results may differ from forecast values due to various risk factors, not limited to those mentioned above.

Name of the company:

ACOM CO., LTD. ("ACOM" or "the Company")

Stock market:

Tokyo Stock Exchange

Code Number:

8572

Location of the head office:

Tokyo

URL:

https://www.acom.co.jp/corp/english/ir/

Position of the representative:

President & Chief Executive Officer

Name:

Masataka Kinoshita

Position of the person in charge:

Chief PR & IR Officer

Name:

Takashi Okamoto

Telephone Number:

(03) 5533-0861

Registration date of quarterly securities report:

August 12, 2022

Commencement date of dividend payment:

-

Quarterly material to supplement

the financial results:

Applicable

Quarterly financial results conference:

Applicable (For domestic institutional investors and financial analysts)

Note: 1. All amounts under minimum units appearing in each of the tables have been disregarded throughout this brief statement and the annexed materials.

Note: 2. The figures in percentages show the year-on-year change from previous first quarter.

1. Consolidated Business Results for the First Quarter Accounting Period (from April 1, 2022, to June 30, 2022)

  1. Consolidated Business Results (Accumulated)

Profit Attributable to

Operating Revenue

Operating Profit

Ordinary Profit

Owners of Parent

(First Quarter)

(Millions of yen)

yoy%

(Millions of yen)

yoy%

(Millions of yen)

yoy%

(Millions of yen)

yoy%

1Q for FY March 2023

66,514

1.6

25,394

1.4

25,387

1.0

16,594

-16.7

1Q for FY March 2022

65,467

-3.0

25,055

-2.9

25,145

-3.0

19,921

-7.8

[Note] Comprehensive income

1Q for FY March 2023: 26,312 million yen

[8.3%]

1Q for FY March 2022: 24,302 million yen

[57.4%]

Basic Earnings

Diluted Earnings

per Share

per Share

(First Quarter)

(First Quarter)

(Yen)

(Yen)

1Q for FY March 2023

10.59

-

1Q for FY March 2022

12.72

-

(2) Consolidated Financial Position

Total Assets

Net Assets

Ratio of

Shareholders' Equity

(Millions of yen)

(Millions of yen)

%

1Q for FY March 2023

1,273,470

582,574

43.0

FY March 2021 (Annual)

1,263,296

563,963

42.1

Shareholders' Equity:

1Q for FY March 2023: 548,082 million yen

FY March 2022: 531,880 million yen

2. Dividend Status

Dividend per Share (Yen)

FY March 2022

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Annual

--

3.00

--

4.00

7.00

FY March 2023

--

FY March 2023 (Forecast)

5.00

--

5.00

10.00

Amendment to dividend forecast: None

3. Forecasts for the Fiscal Year Ending March 2023 (from April 1, 2022, to March 31, 2023)

(The figures in percentage show year-on-year change from the same prior periods.)

Profit Attributable to

Basic

Operating Revenue

Operating Profit

Ordinary Profit

Earnings

Owners of Parent

per Share

(Millions of yen)

%

(Millions of yen)

%

(Millions of yen)

%

(Millions of yen)

%

(Yen)

First Half

132,800

1.0

44,300

-8.4

44,400

-9.1

31,800

-18.8

20.30

Annual

268,300

2.3

87,900

152.7

88,200

148.9

62,400

12.1

39.83

Amendment to business results forecast: None

(Note)

  1. Change in Important Subsidiaries in the Three Months ended June 30, 2022: None (Change in scope of consolidation)
  2. Adoption of Accounting Methods Used Specifically for Quarterly Consolidated Financial Statements: None
  3. Changes in Accounting Policy, Accounting Estimates and Restatement
    1. Change in accounting policy due to revision of accounting standards, etc.: None
    2. Changes other than A): None
    3. Change in accounting estimates: None
    4. Restatement: None
  4. Outstanding shares (common shares)
    1. Number of shares outstanding (including treasury shares)

First Quarter of FY March 2023:

1,566,614,098 shares

FY March 2022:

1,566,614,098 shares

B) Number of treasury shares at the end of period

First Quarter of FY March 2023:

50 shares

FY March 2022:

50 shares

C) Number of average shares outstanding (accumulated quarterly consolidated period)

First Quarter of FY March 2023:

1,566,614,048 shares

First Quarter of FY March 2022:

1,566,614,098 shares

(Note) Brief Statement of Quarterly financial results is not subject to quarterly review procedures.

(Note) Explanation regarding proper use of the business forecast and other notes (Notes to Forward-looking Statement)

The statements about the future performance of ACOM are based on management's assumptions and beliefs in light of the information currently available to it. These statements do not guarantee our future performance: actual results may differ from those in the forward-looking statements as a result of various factors. Please refer to "(3) Qualitative Information on the Forecasts for the Consolidated Business Results" of "1. Quarterly Qualitative Information on Business Results" on page 3 for conditions which are basis of forecasts and notes for using the forecast.

(Accessing financial results materials and archive of financial results conference)

ACOM plans to hold the first quarter financial results conference (video conferencing for domestic institutional investors and financial analysts) on July 28, 2022. The materials used at the conference will be available at ACOM's website promptly after disclosure of financial results.

Contents

  1. Quarterly Qualitative Information on Business Results:························································ P2
    1. Qualitative Information on Business Results: ······························································· P2
    2. Qualitative Information on Financial Position: ······························································· P2
    3. Qualitative Information on the Forecasts for the Consolidated Business Results: ················· P3
  2. Quarterly Consolidated Financial Statements and Major Notes:············································· P4
    1. Quarterly Consolidated Balance Sheet: ······································································ P4
    2. Quarterly Consolidated Statement of Income and
      Quarterly Consolidated Statement of Comprehensive Income:········································· P6
    3. Notes on Quarterly Consolidated Financial Statements: ················································· P9 (Notes on Going-concern Assumption): ······································································· P9 (Notes in Case of any Significant Changes in the Amount of Shareholders' Equity): ·············· P9
  3. [Reference] Quarterly Non-consolidated Financial Statements: ··········································· P10
    1. [Reference] Quarterly Non-consolidated Balance Sheet: ·············································· P10
    2. [Reference] Quarterly Non-consolidated Statement of Income: ······································ P11

- 1 -

1. Quarterly Qualitative Information on Business Results

(1) Qualitative Information on Business Results

During the three months ended June 30, 2022, the Japanese economy remained under preventive measures against the spread of COVID-19 infection in order to sustain social and economic activities. Despite signs of recovery in consumer spending, the economic situation remained harsh due to such factors as soaring energy prices. Overseas, while the situation varied from country to country, signs of economic recovery became apparent on the back of growth in consumer spending, as the COVID-19 infection began to gradually subside and countries began to accept tourists once again.

In the nonbank business sector, while the market is contracting as a result of the prolonged stagnation of consumer spending due to the impact of COVID-19 infection, signs of recovery are currently becoming evident. Although requests for interest repayment are decreasing, future trends need to be closely monitored on an ongoing basis, as requests for interest repayment are susceptible to the impacts of changes in the external environment.

In such an environment, the Company Group has continued its operating activities while paying due attention to the safety of customers and employees, and provided flexible and courteous support for repayment, etc.

The Company Group formulated a new medium-term management plan beginning in the fiscal year ending March 31, 2023. Based on this plan, the Company Group has articulated its commitment to each of its stakeholders in the "vision," and has set forth a medium-term policy to promote initiatives to realize this vision in the next three years. Even amid the spread of COVID-19 infection and other changes in the external environment, the Company Group will continue to promote its operating activities in accordance with its vision and medium-term policy.

Consolidated operating revenue for the three months ended June 30, 2022, increased to 66,514 million yen (up 1.6% year-on-year). This is mainly attributable to: the increases in revenue from credit card business and revenue from credit guarantee, in conjunction with the increases in accounts receivable - installment and the balance of guaranteed receivables. Operating expenses also increased to 41,120 million yen (up 1.8% year-on-year) mainly due to an increase in advertising expenses. As a result, operating profit increased to 25,394 million yen (up 1.4% year-on-year) and ordinary profit increased to 25,387 million yen (up 1.0% year-on-year), but profit attributable to owners of parent decreased to 16,594 million yen (down 16.7% year-on-year), mainly due to an increase in income taxes-deferred.

(2) Qualitative Information on Financial Position

Compared with the end of the prior fiscal year, total assets increased by 10,173 million yen and net assets increased by 18,611 million yen as of June 30, 2022. Details of changes in assets, liabilities and net assets are as follows:

(Assets)

Current assets increased by 14,194 million yen and non-current assets decreased by 4,020 million yen. Consequently, total assets increased by 10,173 million yen. The breakdown of major changes in current assets is as follows: accounts receivable - operating loans (up 20,277 million yen), accounts receivable - installment (up 3,179 million yen) and cash and deposits (down 9,140 million yen). The breakdown of major decreases in non-current assets is as follows: deferred tax assets (down 3,935 million yen). The combined total of allowance for doubtful accounts recorded under current assets and non-current assets increased by 1,390 million yen.

(Liabilities)

With regard to the liabilities account, changes in current and non-current liabilities were an increase of 15,764 million yen and a decrease of 24,201 million yen, respectively, resulting in a decrease of 8,437 million yen in total liabilities. The breakdown of major changes in liabilities includes: income taxes payable (down 8,405 million yen), provision for loss on interest repayment (down 7,502 million yen) and the outstanding balance of funds procured mainly in the form of loans and bonds payable (up 8,242 million yen).

(Net assets)

In terms of net assets, shareholders' equity increased by 10,328 million yen due to an increase in retained earnings, accumulated other comprehensive income increased by 5,873 million yen due in part to an increase in foreign currency translation adjustment, and non-controlling interests increased by 2,409 million yen. As a result, total net assets increased by 18,611 million yen, and the shareholders' equity ratio increased by 0.9 percentage points to 43.0%.

- 2 -

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Acom Co. Ltd. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 06:57:02 UTC.